You Being Your Own Boss ? Good Enjoy that Course Of Time ! But Beware of Some Facts !!
Too Little Savings
When you think of self employment, just because you do not earn those great earnings from your existing job is not the right approach. Business can be feast or famine, especially independent contract work.
Too Much Credit Card Dependence
In business too much dependence to credit is not at all a good sign. But rethink before conducting your business on credit; your steady income could dwindle significantly. You not only have to find new work, you also have credit card bills to deal with. If you start to have problems and are late with payments, the downward spiral into high fees and lowering your credit score can happen quickly.
Not Charging What the Job is worth
Before you go out and start your business, do your research about your chosen field. It's understandable and advisable that you give initial discounts to lure customers in, but make it clear to them what your full price for services is and when it will kick in.
Minimal Advertising Efforts
Word-of-mouth advertising is an excellent way to get a business going. The mistake would be to rely completely on this. Print ads cost money, but its money well spent especially small local ads that reach your target audience. It may take a few months of repeat ads before you start getting business or it might not pan out at all. Advertising is a business risk worth taking and a tax deductible expense, so take a few steps out of your comfort zone.
Unwise Spending
There is a saying that applies to self-employed people, and that is paying you first. When you earn money from business, the order in which you distribute it should look something like this:
1. Your savings.
2. Your wages.
3. Needed business supplies.
Many self-employed folks start out as a sole proprietor. They themselves are the business and everything (income, expenses and liabilities) gets funneled through their own personal account.
Not everyone should incorporate. If you’re not planning on going “big time” with your business or you’ve decided you just want your hobby to make enough to cover expenses, it probably doesn’t make sense to pay the fees associated with incorporating.
Too Little Savings
When you think of self employment, just because you do not earn those great earnings from your existing job is not the right approach. Business can be feast or famine, especially independent contract work.
Too Much Credit Card Dependence
In business too much dependence to credit is not at all a good sign. But rethink before conducting your business on credit; your steady income could dwindle significantly. You not only have to find new work, you also have credit card bills to deal with. If you start to have problems and are late with payments, the downward spiral into high fees and lowering your credit score can happen quickly.
Not Charging What the Job is worth
Before you go out and start your business, do your research about your chosen field. It's understandable and advisable that you give initial discounts to lure customers in, but make it clear to them what your full price for services is and when it will kick in.
Minimal Advertising Efforts
Word-of-mouth advertising is an excellent way to get a business going. The mistake would be to rely completely on this. Print ads cost money, but its money well spent especially small local ads that reach your target audience. It may take a few months of repeat ads before you start getting business or it might not pan out at all. Advertising is a business risk worth taking and a tax deductible expense, so take a few steps out of your comfort zone.
Unwise Spending
There is a saying that applies to self-employed people, and that is paying you first. When you earn money from business, the order in which you distribute it should look something like this:
1. Your savings.
2. Your wages.
3. Needed business supplies.
Many self-employed folks start out as a sole proprietor. They themselves are the business and everything (income, expenses and liabilities) gets funneled through their own personal account.
Not everyone should incorporate. If you’re not planning on going “big time” with your business or you’ve decided you just want your hobby to make enough to cover expenses, it probably doesn’t make sense to pay the fees associated with incorporating.